Why does the price of a car drop so heavily when its salvaged?

Answer 1

A salvage car is one which has been "totally destroyed" from a legal standpoint, ie it was damaged beyond reasonable repair. Insurance companies determine this by asking the question, "Is it cheaper to repair or replace it?". Salvage titles are also issued for cars which have been sold to a junk yard for dismantaling, with the assumption that the car has had parts removed and when put back together some of those might not have been replaced.

Answer 2

It works similar to each and every different income transaction paintings, An illustration, say you purchased a mobilephone, and also you wish to re-promote a few mins later, the purchaser will decrease the cost if he realises that its a moment hand one. So is a automobile-salvage sale. If it had been the cost or virtually the cost of a brand new one, then why would not the purchaser simply purchase it trendy from the trader. Not to put out of your mind, salvaged autos were recognized to harbor a few faults which would appear later, nevertheless now not all, however in essence, don't believe of purchasing/promoting a salvage nearly the fee of recent, The 2 phrases on my own are one of a kind.

Answer 3

A salvaged car is not very safe because its structural integrity has been compromised. It's like if you have a bent fork and bend it back into the right shape. The metal isn't as strong anymore because it's been bent. If you get into an accident with a salvaged car, you're not well protected and the car will be damaged very easily.

Answer 4

Because no one will be willing to pay as much as they would for a non salvaged car.

Answer 5

Because no insurance company will give you full coverage (which replaces the car if its stolen) but only liability which covers fixing someone elses if you hit them.

Answer 6

All of the above and they may still have problems that cannot be fixed and could be unsafe to drive.

Answer 7

Because no one wants to buy it...